Japanese power-broker Ichiro Ozawa has resigned from the ruling Democratic Party of Japan, along with 51 other lawmakers.
The exodus, which has been expected for some time, still leaves the DPJ with a majority in the lower house of parliament.
However, the move is a blow to Prime Minister Yoshihiko Noda, with Mr Ozawa expected to form his own party.
Mr Ozawa said he was unhappy with the sales tax hike passed a week ago.
The prime minister says doubling sales tax from 5% to 10% by 2015 is key to cutting Japan’s high public debt and funding rising welfare costs.
Mr Ozawa, who voted against the bill, has been leading the charge against Mr Noda over the hike.
If 54 or more lawmakers had followed him out of the DPJ, Mr Noda would have lost his majority in the lower house, forcing him to call early polls.
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